Tag: married couples

Here’s What Married Couples Need To Know About Reverse Mortgages

reverse mortgage loveland fort collins greeley longmont westminster coloradoIt’s not uncommon to hear heartbreaking stories of reverse mortgages that left a spouse in dire straits after the other spouse passed away.  How could this happen?  Is it something that you need to worry about?  If you and your spouse are considering obtaining a reverse mortgage, it’s important to understand the long term effect it could have on either spouse once the other passes away, and feel confident any appropriate protections are in place.

What Married Couples Need to Know 

When applying for a reverse mortgage the amount of money you can receive is calculated according to the age of the youngest borrower.  The older the borrower, the more money is available from the lender.

If both homeowners are over the age of 62, both homeowners can be on a reverse mortgage loan.  If both spouses are on the loan, the loan continues if either passes away and will continue until both borrowers have passed.

Another scenario to consider is if a borrower obtains a reverse mortgage and then remarries.  If this was to happen, it wouldn’t be unheard of for the married couple to live in the home for 20 or more years before the borrower passes.  At this time the new spouse would not be protected under the existing reverse mortgage loan.  If you have reverse mortgage and you remarry, you could consider looking into refinancing the reverse mortgage and adding the new spouse to the loan.

And yet one more thing to note is the possibility one spouse needs to move out of the home into an assisted living facility due to health concerns.  If this happens, as long as the spouse that remains in the home is on the loan, they can continue under their current reverse mortgage.

Bottom line: If you are married and are considering obtaining a reverse mortgage, it is extremely important to work with a trusted and experienced reverse mortgage specialist who can easily answer all of your questions and address any concerns you may have.  Making sure both spouses are protected should be a lender’s top priority.

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming.  Contact Jan to learn if reverse mortgage is right for you.

Reverse Mortgage and the Married Couple

Find out if a Reverse Mortgage is Right For you With Jan Jordan, Colorado Reverse Mortgage SpecialistMaybe you have been looking at reverse mortgage online and as you read and learn, the question keeps arising: ‘what about my spouse?’  This is a perfect starting point for understanding the long term effects of taking out a reverse mortgage as a couple.

 

Here are a few points to understand:

 

• As long as both spouses are age 62 or older, they can both be on the loan.  If only one spouse is over the required age, a loan can still be obtained, but the loan will not continue for the ineligible spouse if the borrowing spouse were to pass away or leave the home permanently.

 

• Always bear in mind that the reverse mortgage amount is calculated from the age of the youngest borrower. The older the age, the more money is available.

 

• There are a few choices when it comes to the loan that will affect its status depending on who is listed as borrower(s).  If both are on the loan, when one passes away the loan continues as it was originally set up.  The loan will not become due until the other borrower passes away or leaves the residence.

 

• If both are on the loan, if one spouse needs to leave the home permanently, such as to move into a health care facility, but the other stays in the home, the reverse mortgage will continue as originated.

 

• If both are on the loan, and one spouse passes away, while it is true the remaining spouse will continue on with the reverse mortgage unscathed, things will change if they remarry. While remarrying will not affect the original borrower, it can affect the new spouse if the borrower were to pass away or leave the home permanently.  Reverse mortgage does not include the second spouse automatically.  Refinancing or adding the new spouse would have to be considered.

 

If you are married and considering a reverse mortgage choose a reputable reverse mortgage specialist to work with. They can lay out all your options and help you see the long term picture of what will happen in all the different possible scenarios.  It is also especially important to make sure everyone feels comfortable and no one is being pressured into a scenario that could potentially end badly if the proper precautions are not put into place.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming.  Contact Jan and learn if reverse mortgage is right for you.